Abandoment Letter for home with mortgage Question

[WharffRat]

We received an abandonment letter for our house with a mortgage on it.

We received our discharge in March of 2008.

My Mortgage statement comes as an informational document and not as a collection notice or bill. when I called and asked when they would change back to normal mortgage statements. The mortgage company told me that the mortgage was discharged and I would only receive the informational statements from now on.

I was told if I continue to make payments as normal everything would be fine and the house would be paid off at the end.

Here is my question. I owe $30,000 more on the house than it is worth. We have the opportunity to purchase a different home from a family member. If we can work out arrangement for the new home, Can I give my current home to the bank and walk away?? Will I owe them anything?? I do have the abandonment letter and was discharged back in March 2008. But, I have continued to make my payments since then. Will that cause a problem?? Is it too late to walk away??

Any help or advise would be great.

Thank you.






*Filed Chp 7 bk 8/8/07
*Last day to Objection 2/8/08
*DISCHARGED 3/13/08

[WharffRat]

I do not remember reaffirming the mortgage. I know we did that for our truck. I will check the paperwork tonight.

[AngelinaCatHub]

Not sure what is going on with you, but I think I would (after checking lawyer) try living in the house and pay nothing. Start saving for that other place with what you would pay them. Please keep up the insurance and possibly taxes. I hope I'm right and if I am, you are pretty fortunate. 'Hub

[WharffRat]

More details....

I just went through all of the paperwork and we NEVER reaffirmed the mortgage. We did on the BK CH 7 Application check the box with the intenet to reaffirm Mortgage. But it never happened.

I received a Notice of Appearance from the Mortgage company that was sent 8/16/07.

I received my Abandonment letter on 9/25/07 and no objections were filed.

My discharge was on 3/13/08 and we have kept payments going on the mortgage.

Any help would be great.

Would this question still be covered under my retainer with the lawyer??

Thanks again for any help/advise

[b_girl]

I also received a motion of abandonment from our mortgage lender, but it was during our 60 day waiting period. We also had not re-affirmed the loan but we were not paying it as we had re-affirmed a second home. The best I can understand, it was our mortgage lender's attempt to do a deed in lieu of foreclosure...it saves them money and you get spared the trouble/spectacle of a normal foreclosure process. When I spoke with our attorney's office about it, they explained that the lender had filed it with the court following our 2nd missed payment and their discovery of our rejection of the re-affirmation. They had sent a quitclaim deed to the attorney for us to sign. We signed a new reaff instead (we had changed our mind on which home to keep and needed to sign it if we wanted to stay in this home--they were obviously ready to act).

I'm surmising that your lender has done approximately the same thing. I know that your case is different from ours--you continued to make your payments--but our lawyer had warned us that in our state, ride throughs (where you continue to occupy the collateral and pay each month without signing a reaff) wouldn't work and would result in the lender taking back the property despite any payments made. The swiftness with which our lender acted once they believed we were out of the property (we actually weren't--we had already changed our mind) showed me that he was right...some lenders in some areas are no nonsense...there is no lingering with them, savoring free rent and taking your time to look at your options. Sounds like your lender is one of these, though you actually got more time than we did (our lender is pretty nasty). I doubt your attorney will assist you with this as it has been so long since your discharge. However, you can always ask. It appears to me you have only a short time before you need to be out of the home. As for whether you will owe any money if you leave...you didn't sign a reaff (which is why they are basically 'kicking you out' with that motion) so you are free to leave this house behind you in the rear view mirror without fear of any financial repercussions to you or your family (as long as this mortgage and any/all liens on this home were included in the BK). As for the payments you made all this time, consider it rent...it kept you in the home this long and did buy you some time. Good luck!

[WharffRat]

No one is trying to get us out of our current home.

We just were presented with the opportunity to possible get a larger home from a family member.

If we cannot walk away from our current home. There is no way we can purchase the larger home from the family member.

The mortgage company has not made any effort to kick us out. We are paying our monthly payments and the principle is getting lower with each statement.

I am sorry if I was unclear during my initial questions.

Thanks..

[TEW]

If thre loan was discharged but you are still making payments you can stay there as you are doing. If you stop paying the loan they will foreclose. remove you from the deed and sell the house. since it was discharged as far as i know you can walk away. I am going through this now not discharged yet but my lawyer said i can leave anytime.

[b_girl]

I'm glad to hear that. Our lender was not as kind and ride throughs just don't work in our area. However, the facts are still the same...you did not sign a re-aff, so you are free to leave the house behind.

[WharffRat]

Thank you for all advise.

I just wanted confirmation that what I thought was correct.

Now we have to see if we can get a mortgage for the new home.

We pulled our credit reports last night. 552 for me & 553 for the wife.
The only thing listed that we owe is the reaffirmed truck from NMAC for both of us.

Wish us luck.

Thanks again.

[WharffRat]

Looks like the new house deal ins't going to work for us.

The family wants a higher price and it will not fit into our budget.

Thanks for the advise.

Which brings me to another question???

Should be reaffirm our home?? Since, it did fall through the cracks during the BK. Or, should I just let it be. I am building equity according to my monthly statements. Thanks again.....

[PoorGrammyinBK7]

I do not think you can reaffirm after discharge.

[b_girl]

Sorry to hear this. And you're right grammy..that option is long gone. Your loan is now discharged and no longer exists. You can always keep repaying any discharged debt, but legally it no longer exists. It looks like your lender is working with you on a ride through, so just keep paying it until you are ready to leave.

[WharffRat]

Thanx again....They are still working with me....hope it stays true from the next 27 years or so

[b_girl]

I'm not sure I would chance it...at any time they could stop working with you. For the time being, you're safe...your lender probably doesn't want another foreclosure to deal with, but that might not always be the case, especially over the course of 27 years. JMHO.